Arbib close to selling Perpetual

Martyn Arbib, the multi-millionaire founder of fund manager Perpetual, is close to tying up a deal to sell the company. Arbib, who is handling the negotiations personally, has narrowed down his search for a buyer to one serious contender, with a couple of others waiting in the wings.

Sources suggest a sale, possibly to a European buyer such as Italian bank Unicredito or ING of Holland, will take place within weeks.

But insurance giant CGNU, tipped at the weekend as a bidder, has no plans to launch a takeover, according to observers. CGNU, created in February from the merger of CGU and Norwich Union, is now one of Europe's top five insurers and has also been included among a list of possible bidders for UK mutual Equitable Life.

Perpetual is one of the UK's most popular unit trust managers and manages almost £12bn. The sale talks have been conducted in the utmost secrecy.

Arbib, with family trusts, controls around 47%. He is looking for a buyer prepared to pay around £50 a share, valuing the business he built at around £1.45bn. But most analysts view £1.3bn as more realistic.

Talks with Anglo-American investment group Amvescap broke down in May following disputes over price, though sources believe the Amvescap may be prepared to re-open talks.